Mt. Gox gets hit with a class action lawsuit

Posted Mar 1, 2014

On Friday, Mt. Gox announced that they filed for bankruptcy protection. Mt. Gox lost $473 million worth of Bitcoins and is around $63 million in debt due to a major security breach. Now Mt. Gox is being sued in a class-action lawsuit.
The lawsuit was filed by Gregory Greene of Chicago. He is claiming fraud and negligence. Greene estimated that his stake in Bitcoin was worth around $25,000. Mt. Gox is based in Japan, but the lawsuit claims that Mt. Gox’s business in the U.S. subjects them to its jurisdiction.

“This catastrophic loss has not only revealed the instability of a burgeoning new industry, it has also uncovered a massive scheme to defraud millions of consumers into providing a private company with real, paper money in exchange for virtual currency,” said Greene.